Want BIG profits?
Well, you need to give yourself enough equal chances to win in the markets.
The way you do that: Rule No. 2: Equal-weight all of the positions in our portfolio.
Equal weighting your positions means investing the same dollar amount in each stock you buy in our portfolio.
Yesterday, we told you to spread your money around and give yourself many opportunities to win. Today, we want to make sure you give yourself not just many, but equal chances.
Set a specific amount and stick to it.
Then, use that set amount as a marker for all of your positions across our portfolio.
For example, say you decide to invest $1,000 into each position.
And let’s assume the stock price of Uber is $50 and Tesla is $500. If you invest $1,000, your equal-weighted positions would be 20 shares of Uber and two shares of Tesla.
We would consider them both equally great investments!
Remember, depending on the price of the stock, it’s absolutely okay to buy just one share.
This rule can be hard — even for Paul sometimes! There are some stocks that make us want to bet big!
But it’s critical to invest smartly. By buying equally into several positions, you’re spreading your shots, so to say.
Say you bought $100 worth of five stocks. If one of them goes down, it won’t drag your whole portfolio with it.
But if you don’t equal weight and put $10,000 into one and $100 into others … if that one goes down, well … it’s bad news.
We can’t tell you which stock will go up with 100% certainty. If we could, we would — promise!
So, the best way to ensure your success:
Equal weight your portfolio.
Now, we’re about mid-way through our Strong Hands series, so it’s time to see where you are.
One amazing reader, Frankie, created the Making of Strong Hands: 10 Stages:
Now, we want to know: What stage of Strong Hands are you in?